Strategic Change Management At Marks And Spencer Business Essay

Strategic Change Management At Marks And Spencer Business Essay Marks and Spencer is one of the leading foods and non food items retailer almost all over the world and its mission is to provide excellent quality to their customers. It has long heritage of excellent service and product and successful stories of business. These days they have faced some great extend of competition from their competitors such as competitive price strategy and use of excellent market tools and new fashion at low cost prices. In this report we will discuss the need of change that Marks and Spencer would required in organization. Background of Change: These days companies are focus to increase their product line and market their process by using of effective marketing tools for example 4ps for example Tesco is the one of the biggest retailer in the UK and currently having more than 2500 line of products in their store and they are increasing their products day by day because they want to retain their old customers as well as they want to attract new customers, for this purpose they have strong RD Team that helps them to know that what would be the competitive product and they not only took initiative but also start their specific group researched to improve their existing product. Mean while the whole process is monitored by upper management level and they use right place, right process and right product for the right people and increase their sales level with the slogan of Every little help. This is very effective strategy to show the whole process by saying that that they are only helping their customers. The need of above example is the main key process of their RD team is that they review their whole process again and again to make their decision and products better and implement changes on urgency basis. Before discussing the need of change in Marks and Spencer I will discuss and model for changes which are these: Kotters Model for Change Kotters Model for Change: Change is a process that need to be placed compulsory in each and every organization these days after certain period, these changed could be in management level or labour level, but the important thing that this change should be implemented successfully to gain the same level or more then the old level of satisfaction or profit. In Harvard Business School Korter introduced the eight step of model of change that help organization to implement the desired change successfully and carefully and also on urgent basis. (Mind Tools, 2011) He mentioned that changes that organization need in the presence of their competitors are most quick so thats why employees should accept the change to help the org. to lead in market with quick decision. Step no. 1: Need of Urgency: As we have discussed above that company needs a quick change to lead in the market with competitive skills and products and with competitive decisions. Now we will see its importance with an example of Marks and Spencer, suppose its competitor ASDA introduces a discount of 10% bread and butter together, now the very next morning it is the challenging situation for Marks and Spencer to retain their customers before opening hour they have to call the meeting on urgent basis and plan the change in their strategy because of the competitors actions, they introduce loyalty scheme that who buys bread and butter will get double club card point that will help to retain the customers and their profit will remain same, but afterwards they need to make it sure that this one decision is implement in all their branches in UK to protect the confidence of the customers. This is call urgency need of change. To implement these skills and situation MS would need to: Analyse their employees potential of learning and their knowledge skills that how active they are towards any change Allow the room and time to employees to find out the need of business by doing SWOT analysis and made them aware that how quick they should be in term of change When management take the decision from employees than employees would know and will assess the upcoming change and will be ready to adopt it. Step no 2: Strong Coalition: Implementation of change without strong leadership means having a profit without investments in retail industry. We can measure the importance of change without leader in our daily lives. According to Korter team work of organization towards change leads to success. For that purpose Marks and Spencer must follow these points: Take a feed back from employees about the progress of the leader Do external audit to know the influence of leader on their employees Hire new strong leader to implement the changes on urgent basis Step 3: Change in Goals and Mission: Every organization do practice and do internal audit to make sure that their employees are working with the knowledge of their path that leads to common mission and objectives. According to Korter in case of change in organization goals and mission they must remember these new approaches to their employees. (Value Based, 2010) They can do in the following format: Use of few words and post it inside the organization on small distances Do the seminars with the general public and with employees to show your progress and the care companys for customers and their employees Use of these words in common speeches in mid term reports, etc. Step no. 4: Regular discussion and communication of vision and mission: As we have discussed before that the need of the management is to do practice of remembering of common vision and mission among their employees to let them know their duties and any new changes. Step no. 5: Remove Obstacles: As we have discussed the korters need of urgency at start they also focused that if they found any obstacle in reviewing process it must be removed urgently. Step no 6: Short Term Wins: Management while remembering the vision among employees should appreciate every little effort of employees to made them perfect and efficient in their own tasks. This would help the other employees to be motivated. (The leader ship hub, 2011) Step no 7: Build the Change Continuously: This step defines that company need to be productive and should not stop after certain level of change but regularly should analyse the market situation. Step no 8: Relation with companys culture: Company such as Marks and Spencer should always relate the change ideas and strategized with the company environment and with its current cultures. Change in Marks and Spencer: In recent research it is found that MS having low level of sales due to their extra expenses on non related items like according to MS they spent 2m pounds in partnership with Oxfam to collect the old unused cloths and for stopping land filling. This strategy also market on their websites and on different paid place these activities got lot of amount and did give back nothing in term of financial to stake holders. Before implementing these kinds of strategies it is necessary to measure the benefit of key stake holders. (Marks and Spencer, 2010) Initially they attract 1200 of people on their web site in one moth by saying that they will award a sum of amount who would give the most productive idea to protect the environment but this activity to invite them didnt give them as such because they were more focused towards other activities than introducing new styles and products. Need of Change in Specific Areas: As we have discussed the reason that why they need change that is first of all the over spent on the advertising and second thing is that the focus of the management towards companies goal and mission and third is increasing the product line. These factors are not only focused on companys strategies but if we discuss the same factors with the companys objective we must ensure the quality of whole process to let every employees know the importance and values of companys mission. With the relation of all above discussion now I will discuss the exact main root of change that what are the places needed change? Factors of need of change: Below are the main root that causes the disturbance and these factors need to become changed in Marks and Spencer: Unclear goals of MS among the employees Extra spending and attention of extra curricular activities Low number of product line Increase new style fashion Regular reviewing and monitoring process (Internal Audit) These are the few points that must be implementing in Marks and Spencer to accomplish its old mission statement. Change in Management Activities: As we have discussed that the main problem in marks and Spencer is that their vision towards their business activities is not clear they are focus to treat other activities as their own business activities such as they joined their hand with Oxfam a charity organization and have started campaign to collect the unusable cloths to stop land filling and reselling them with the help of Oxfam. Actually they have distracted from their actual work its not due to some employees activity but this action is being decided and taken by upper level of management. Now the change is needed in that area to recover the absence and demage to business brand value to complete their uncompleted short term goals to achieve long term goals on decided time until 2020. Application of Kotters Model: Here kotters first step of model of change applies that they needs to create the situation of quick change by considering the current situation of their business as compare to the other competitors they must be able to act as quick as they want to gain the profit from the market businesses. For this they need a strong leadership that would motivate and attract the employees towards the need of urgency because some times employees didnt focus that what they are doing and they didnt adopt the change so it is the responsibility of leader to insist them that change is the compulsory thing that needs to be implement. (mind tools, 2010) Change in Product Line: The change is needed in product line where there are very few fashion products they are presenting as compare to their competitors. BY doing SWOT analysis they would come to know the need of new and innovative product that will help them to retain the old customers and by introducing new styles in non food industry they will attract other new customers as well. (Marks and Spencer) Change in Spending on Extra curricular Activities: They need to change their perception towards the mind capturing of customers until now they understand that the best way to attract the customers is socialise them on their web site and ask them to give new ideas to win the prizes but these ideas were not so popular and still the reason of spending extra money and time on it. Application of Short term Wins: After ensuring the strong leader management need to do a quick review of their planning and find out any barrier that stops their progress towards their goals. After ensuring all tools and techniques than they need to make sure that they are appreciating their employees to get out of them some thing extra to promote their vision and to get the suggestions and new ideas from them. Change in Fashion Products: As we have discussed that they are currently in need to attract the customers by introducing new styles and fashion in garments industry to attract more customers from all around the UK so in that case they would able to become the market leader in short term in the UKs market. Relation with Marks and Spencers Culture: After ensuring that they have removed the barriers and have created short term wins now they need to change the inner environment of MS time by time to get the modern techniques and styles in to their organization. That continuous change would remind the employees to give their on suggestions on their short term wins and with that opinions business would be able to act more quickly towards the change. Key Stake holder at Marks and Spencer: Now we will discuss the importance of stake holders in any organizations and their need in the companies change strategies and their importance in over all business planning. Stake holder means a group of person and companies having direct or in direct relation with the company strategies and they are affected with company decision internally or externally. Suppliers as a key stake holder at MS: Supplier at Marks and Spencer are both food and non food products so while making strategic planning it is crucial to take care of their interest in that policies. Suppliers interest could be increase in number of their order so they would get paid more and taking new orders would increase their productivity and profit. With the consent in change in business strategies of suppliers they would able to provide new products and new ideas on time to the customers on the shop and also on online stores and they would get on time door to door delivery. They also a great impact on environmental by using green factories and transportation while delivering the food and fashion products to the customers at their doors. Board of Directors at Marks and Spencer: Board of Directors are those person who have superior power inside the organization and are holding large number of shares and any nay policies effect their interest more badly or positively. So it is vey important to design the change policy in the way in which BOD can easily identify their short term and long term profit of the organization. Customers of Marks and Spencer: Their are two types of customers who shop from Marks and Spencer that is in shop customers and other type is Online customers in recent annual report according to MS they showed the sales figure in which the total 15% of sale from UK was online based that was the huge amount sold from online resources. Now while doing change in organization it is very important to consider the interest of both type of customers to get the highest level of satisfied customers with increasing number of sales. Government: In some projects govt. is included in the business planning as a stake holder such a charity program that runs nation wide have a great influence of govt. department in it so doing change in policies would effect them badly. So management needs to care their interest as well to protect their long term benefit. Implementation Process of Model of Change in Marks and Spencer: Bow we will discuss the need of change and how they implement it in the organization with consent of all other key stake holders. To understand this process easily I have divided these steps in main five steps such as financial and function level and their sub heads with Kotters models, etc. The implementation is described in table below: Model of Change in Marks and Spencer Levels Definition Starting/Function level Need To made quick decision on Urgent basis Strong leadership that leads to strong team work Process Level Clear vision on all companys objective On regular basis communication with companys employees Structure Level Improve structure level by removing any obstacle Increase the confidence by awarding them on short term achievement Marketing Level Regular working towards change with the help of marketing tools Innovation/Maturity Level Daily revision of old achievements and new targets Progress with practice under supervision Discussion of above Table of application and implementation: In Marks and Spencer company have lot of branches inside the UK to make sure that they all act on policies of change at functional level and process level it is necessary to get their strong leadership on them to bring the new and desired change it is due to the research of Kotters model of change according to him the need of change only could be generated if the team would have strong coalition and strong leadership. Thats why doing SWOT analysis at this level is also important to get rid of barriers at urgency level, other wise whole process would lead to the company towards unsuccessful change and the interest of stake holders would be damaged. Yours Truly, Adnan Jamil

Term Paper, Rizal

TO THE YOUNG WOMEN OF MALOLOS AN ESSAY BY DR. JOSE P. RIZAL (TERM PAPER) PATRICK JAMES D. CLEMENTE MC21 A woman, what is a woman? Woman plays a very important role in our society. They are the light of the family, the one who is responsible for the acts of their children, the first teacher of each and every child. But what do you think will happen to a country if almost every woman is acting like a slave? Being manipulated? Believes in fake sancity and no power by themselves?If that is the case, then what would they be? They would be a big failure. Once in the history of the Phillipines, there is a man who opened the eyes of each and every women.. it was doctor Rizal. He did it by the way of sending a message to our country women†¦.. Jose Rizal’s legacy to Filipino women is embodied in his famous essay entitled, â€Å"To the Young Women of Malolos,† where he addresses all kinds of women – mothers, wives, the unmarried, etc. and expresses everything that he w ishes them to keep in mind. To the Young Women of Malolos† was written by Rizal when he was in London, in response to the request of Marcelo H. del Pilar. The essay was originally written in Tagalog then later on translated to English. The essay contains inspirational messages for the women of our country. It also points out, almost everything about the issue of mistreating the women in our country. Rizal wrote the essay to open up the eyes of our country women. That essay has been a big breakthrough for the women in the Phillipines.It served as their stepping stones in obtaining their goals. It helped them see what they are missing, thir flaws and almost everything. Like for example is why do they believe on everything the friars have told them. Rizal wrote the essay very smooth and enough for the women of our country to see what is really happening and what should be done. On the essay To the Young Country Women of Malolos, Rizal dug out a lot of issues about our country, an d what is happening to the women in out country.A lot of issues were discussed and some of it was– The rejection of the spiritual authority of the friars – not all of the priests in the country that time embodied the true spirit of Christ and His Church. Most of them were corrupted by worldly desires and used worldly methods to effect change and force discipline among the people, especially to the mothers. A lot of mothers had been completely manipulated by the friars, if the mothers were manipulated it also means that their children will also be affected. Another thing that Rizal pointed out

Persuasive Essay On Survival - 1769 Words

A survivor is someone that will never give up and never stop fighting. Someone that will use the love and compassion surrounding them to aid their success. A survivor is someone that has hope and that is able to believe in themselves and others. Accepting help and acknowledging that survival is not achievable by oneself is an important step in survival. Knowing that life may rest on someone elses shoulders and trusting them is essential. To be a survivor working as a team and accepting support is necessary. Growing and having a relationship with a group of people aid to the survival of physically tough situations. In the book Miracle in The Andes by Nando Parrado a rugby team uses their resources to survive in the Andes. Shortly after†¦show more content†¦The relationship with the officials was non existent, if a relationship with the officials was present they would have been there to catch her. The relationship Kayla has with her coach has enable her to survive at the end of each race. Kayla and her coach are able to build onto one anothers abilities and disabilities. They are able to work as a team to survive and conquer. Kayla and her coach also share each others knowledge. Since Kayla informed the coach that she has MS he can help other runners with MS. The coach can help other coaches support runners with disabilities. The knowledge they shared can lead the survival of many more athletes. In both Miracle in The Andes and For Runner With M.S., No Pain While Racing, No Feel ing at the Finish relationships push physical strength to its limits. In both sources relationships are used to aid survival because of the strengths and weaknesses building to create a full set of survival skills. If they did not have a team or companions there would be â€Å"gaps† in their skill sets, if these were present survival would be nearly impossible. 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Failed Relationships in Ernest Hemingways Life and Fiction Free Essay Example, 1500 words

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Police Misconduct And The Crime Essay - 1644 Words

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Company Fairwood Free Essays

The introduction, Section 1 , is followed by the Method section which describes how the research was conducted. The results of the research are presented in sections, Results and Discussion. The Conclusion is a summary of the results which were found. We will write a custom essay sample on Company Fairwood or any similar topic only for you Order Now 1. 2. -aground about Fair-wood- Firewood pursuing a â€Å"customer first, people-oriented† concept, listen carefully to the needs of customers, close to the diet trend in product innovation and continuous improvement, committed to providing quality and price of popular foods. With the intention of service and convenience stores, o provide customers happy dining experience. To enhance the brand image and competitiveness, Firewood in November 2003 costing HOOK $ 15 million were 360 0 reforms big action, creating a new brand image, including the replacement of the trademark, as well as innovative operations, restructuring and upgrading in-store men us environment. Famous designer Mr.. Chin Yoking more Firewood design a â€Å"leap into the sky humanoid doll† as the new brand logo, feeling energetic, highly motivated, so that customers feel young Firewood vitality, innovation and fun image. In addition, Firewood invited two internationally renowned interior designer Mr.. Liana Chitin and Mr.. Moratoria Christine pass hand in hand surgeon for Fair-wood’s branch redesign, renovation and every three years thereafter to inject new elements. Firewood is Hong Gong’s first fast food chain stores invite professional composers creative background music, but the first implementation of a â€Å"comprehensive smoking† policy, entered into a new standard for the fast food industry in the branch. Firewood has always been â€Å"customer first†, has introduced innovative products, quality ingredients carefully selected to enhance food quality. Ace mix more than 30 kinds of products, including spices, â€Å"A living curry†, a record level Of rich and unique taste; taste tomato sauce and use provoke high gluten pasta boiled â€Å"Extra Virgin Olive Oil Pasta Series,† and â€Å"baked pig Grilled rice â€Å"and† corn Roil meal. † Other innovations include â€Å"point not even drop MS† series, â€Å"grilled thick-cut black dolphin†, Japanese Ramee, etc. , to creativity is committed to meet the needs of customers. Services, Firewood pioneered the â€Å"personal service† so there is a need of the customer to enjoy room service. In addition, also implemented in all outlets â€Å"Accessibility Services†, adding removable seats and ramps, provided on behalf of other intimate meal and room service. For the practice of â€Å"people-oriented† concept, the Group in addition to continue to recruit outstanding talents, nurture a caring culture, offers a number of benefits for existing employees, such as children’s education fund, the purpose is to build a happy team, and create a fun dining experience, the â€Å"eat too Happy â€Å"mission to bring customers. Contribute to the community has always been one big happy corporate focus. Therefore, launched the â€Å"S 4 happy meal† campaign to benefit the needy, also held â€Å"Merry Fun Day† and â€Å"Charity Christmas party† to increase communication with community residents, promote social harmony and the spirit of helping each other, practice â€Å"Fresh happy, wonderful in† corporate mission. With â€Å"people† oriented We attach importance to communication between employees, care for each and every employee the ability to obtain satisfaction on the job, Establish continuous learning and improvement culture, providing a growing and learning space for every employee. Food was happy to be wonderful. † We are committed to creating fun dynamic work environment, with the establishment of â€Å"happy team†, the introduction of flexible working hours, to encourage employees to strike a balance in work and life, Our caring staff, payment of a special holiday gift, but also actively organize various recreational activities, such as: Merry giant sound, autumn barbecue, quarterly dinners, birthday parties, etc. From the establishment of happy team spirit and strengthen the sense of belonging to employees of the company. The opportunity to focus on individual play We passed a fair assessment, encourage employees to continue to learn and develop their potential and self-enhancement and, For outstanding employee reward and promotion opportunities, the fastest available 1. 5 years promoted from junior positions to store management. Improve job training We offer a complete range of diverse classroom and professional skills training, Encourage employees to lifelong learning, constantly absorbing new knowledge and enhance their professional skills, their talents, through continuous improvement and learning, get more rapid growth and rumination, For employees to make clear promotion ladder, clear and viable career development prospects. The award-winning Firewood received the following recognition and certainly in talent development and staff training: ERP â€Å"Manpower Development Scheme† Excellent Employer Award Distinguished Family-Friendly Employers â€Å"Caring† International Day of the 18 districts caring employer Training spirit – â€Å"Fresh happy, live a wonderful, Firewood† Training of personnel is the most important one Firewood ring, â€Å"continuous learning, development and self-enhancement potential and† is the goal of our velveteen team. To this end, the Group is committed to organizing in service training program for potential employees to provide diversified learning opportunities to equip individuals can play an unlimited potential. To help employees meet the challenges ahead, we have designed different job training, aspiring to broaden their horizons and enhance the confidence of employees to participate in order to absorb the required knowledge, Prepare for future promotion. Promotion ladder We through various training courses to provide advancement opportunities or staff to learn more about food production, customer service, expertise in- store health management, improve management capabilities. Promotion ladder courses ; 360 c comprehensive management course ; youth Management Course ; shop management training Skills upgrading training ; sales skills ; meal catering English response to training SF posts ; job skills certification To explore the potential of staff and the development of personal self- director. Every year we held: ; internal competition: [trials] most tip of the ring, some fighting Chefs ; provide scholarships to potential employees omelet management capabilities outside the course of professional organizations Value-added training To have caused to enhance the professional skills of the staff arrangements involved in cognitive Professional Certificate courses, including: ; catering computer unit certificate courses ; minority employees Cantonese training courses ; Health Manager ; Diploma in Business Management 2. Why we choose this company? We chose this business because it’s a well-known catering enterprises, of which a fast food store location is adjacent to our school sites, when we were n the field to collect data, can more convenient, and easy to collect detailed and the accuracy Of the data, so finally be able to successfully complete the report. 2. 1. Aim Firewood aims to establish a â€Å"happy team† so happy, happy employees will bring customers and dedication to bring customers a pleasant dining experience. Group and staff work closely together, with the practice of â€Å"eating too happy ; be wonderful† corporate mission. 2. 2. Operating guideline The management advocates balance between work and life, the introduction f flexible working hours, while employees hold different types of activities to strengthen employees’ sense of belonging to the Group. Group offers comprehensive in-service training programs for staff to enhance their professional skills and further develop their talents. The Group also provides a lot of opportunities for promotion and attractive incentives to reward performance excellence. 2. 3. Pros Cons Firewood is a large chain of fast food restaurants. Pros are with â€Å"people† oriented, â€Å"eating too happy to be wonderful,† focuses on individual play opportunity and improve job training. T need to improve the way people with disabilities to buy fast food, they can not require the help of other people can buy the fast food. The Fast Food Shop of the environment and facilities, can to facilitate disabled access. The Fast food shop of the equipment, so that they can easily enjoy better food in the shop. They really provide to a fast food shop accessible services. 3. Suggestion Human resources are one of the Group’s core assets. Labor shortage is one of the main challenges that the industry is currently facing and it is increasingly difficult to recruit experienced staff. To tackle this issue, Firewood has to step up efforts to attract talented workers by offering comprehensive staff development programs. 4. Method 4. Secondary source Some internet resources from Google together with data from recent reports from Government of Hong Kong were used as references. Online information was found with the most common Google tools. Their opinions and support provided valuable data for this report. There are 4 articles cited in the report. The 4 articles were useful to make the report easy to understand. It contains the questionnaire. Elect the internet search to finish my questionnaire. 4. 2 Pr imary sources 5. 2. 1 Subjects 20 local Hong Kong people were selected to answer the questionnaires. The respondents were aged from 20-50. No young children were interviewed, because most of them depend on their parents. Most are student in ours class Holmes Institute University. 4. 2. 2 Questionnaire The development of the questionnaire was multistage process in which a general theme was first given to each group. Each group brainstormed the theme to find a suitable subtitle for each member. Then, a first draft of the questionnaire was developed with some basic information. The basic information was found the internet. How to cite Company Fairwood, Papers

Managing Food and Beverage Operation

Question: Discuss about the Managing Food and Beverage Operation. Answer: Introduction In the era of twenty-first centuries, the world of business changing in a very quick pace. This process makes it difficult for the business industries to keep pace with this change. Strategic planning is an important concept in this regard as effective strategies help to give the businesses the desired competitive edge over its competitors. On the other hand, strategic planning helps to analyze different aspects of business and the result of the analysis assists on taking effective decisions for the business (Smith, 2012). It is required for any industry to analyze the internal as well as external environments in order to gain a clear view of the current business position. The restaurant and bar industry is one of the fastest growing industries in the world. Numerous numbers of restaurants and bars can be seen all over the Australia. The large number of businesses in this industry contributes to increase the competition among them. Here comes the need for strategies in order to get the competitive edge. In this regard, Porters Five Forces Analysis and the VRIO Theories are two of the most important tools for the managers of this industry to make the perfect strategies for their businesses. The main objective of this study is to assess how the VRIO Theory and Porters Five Forces Theory of competition can help the restaurants and bars in getting the long term competitive advantage and increase the profitability of their businesses. Porters Five Forces Model Analysis As per Porter, (2010), the analysis of the external environment of any industry is the foremost factor to make strategies for the organization. In this regard, Porters Five Forces analysis is one of the most important tools to analyze the external environment of the industry. There are five important factors in the Porters Five Forces analysis. They are rivalry among the existing competitors, threat of new entrants, threat of substitutes, bargain power of the suppliers and bargaining power of the customers (Dobbs, 2014). In case of the restaurant and bar industry, the managers need to analyze these five aspects for getting competitive advantage. Porters Five Forces Analysis is considered as one of the most practical and credible solution for competition. It is important for the managers to take into consideration of this model while preparing strategies for the business. Porters Five Forces Model is assessed in details below in relation to the restaurant and bar industries in Austral ia: Rivalry among the Existing Competitors: The restaurant and bar industry in Australia has been growing in a very fast pace and this process contributes to the emergence of numerous number retardants and bars in this country. Thus, it is important for the restaurant and bars to stay in the competition. In this regard, the managers of this industry need to find out the factors that are affecting the competitive rivalry. There are various reasons. Some of them are 1) the existence of large number of firms, 2) the slow growth of the market, 3) high fixed cost, 4) very high storage cost, 5) low switching cost, 6) low product differentiation 7) high exit barriers and many others (Rothaermel, 2015). All the restaurants and bars want to achieve the maximum market share in revenues and profits. The managers need to use some tactics to gain the long term competitive advantage. First of all, they should set a competitive price so that the particular company can be differentiated from the others. After that, the managers should introduce the some creative distribution channels to make the operations more creative. The most important tactics are to maintain a healthy relationship with the customers and to provide better services to them. These steps will help the restaurants and bars in retaining the existing customers (Rachet, 2014). Threat of New Entrants: Another effect of increasing the competition in the restaurants and bar industry is the increasing number of new restaurants and bars. One of the reasons is that this particular industry does not require any high level of investment (Tauman, Weiss Zhao, 2015). On the other hand, there is not nay requirement for obtaining any kind of patents from the government to carry on the business. All these reasons contribute to a large number of new entrants in the industry. Here also the managers of the restaurants and bars need to formulate some strategies so that the new entrants cannot affect their business. The managers need to make a strong customers base with their high quality products and efficient services which will be tough to break for the new entrant. On the other hand, the managers need to establish a strong network of suppliers. There should be innovation in the products of the existing companies so that it becomes hard for the new entrants to enter in t he restaurants and bars industry (Akhter, Rahman, Rahman, 2014). Threat of Substitutes: Substitute products are those kinds of products which need the demand of the consumers but they are available in another market. This is a serious kind of threat for the restaurants and bars industry. Now-a-days, the major substitute for the restaurant is virtual or online food delivery chain or the online restaurants where people can get all the products of restaurants are a comparatively low price than the restaurants (Porter Heppelmann, 2014). There are certain factors that work behind the high threat of substitutes. In this case, the switching cost of the customers is low and the substitute product can be obtained in much lower price. On the other hand, the quality and the performance of the substitute products are equal to the actual product. Thus, to get the long term competitive advantage, the managers of restaurants and bars need to adopt a competitive price strategy that can give a fight to the substitute products. Various innovative services like hom e delivery of the foods of the restaurants, complimentary gifts with the products of the restaurants and bars and others can help them in retaining the existing customers and also can help them to attract new customers (Magretta, 2013). Bargaining Power of the Suppliers: Every business organization needs suppliers to get the required law material for the business. In restaurant and bar industry, various kind of raw materials are required. Bargaining power of suppliers refers to when all the suppliers of an industry can influence the price and availability of the products (Heimeshoff Klein, 2013). There are various factors that can increase the suppliers power. The Power of the suppliers increases when the price of the products can be increased without affecting the demand. When there is a few number of suppliers available in a particular industry, the suppliers become able to increase or decrease the price of the products. Thus, the managers of restaurants and bars need to adopt perfect strategies to avoid this kind of situation. This is the utmost responsibility of the managers to maintain a cordial relationship with the suppliers. Long term competitive advantage can be gained when there is sufficient number of su pplier available in that industry. However, there is not any control over the number of suppliers by the managers of that industry. Hence, it can be concluded that there should not be any monopoly in the suppliers market for long term competitive advantage for the companies (Haucap et al., 2013). Bargaining Power of the Customers: Bargaining power of the customers refers to when the customers have the power to influence the price of the products. It can be observed that there are a lot of customers in the restaurant and bar industry. Certain reasons contribute to increase the bargaining power of the customers. The first reason is that the existence of substitute products in the market. The customers can influence the price of the products when they have choices over the products (Fabbri Klapper, 2015). Another reason is the low switching cost. Customers dominates the price of products when the switching cost of is low. Other reasons are the low differentiation of the products, high price sensitivity of customers, high knowledge of customers about the products and many more. Thus, the managers of restaurants and bars should be able to introduce different kind of products with reasonable price. On the other hand, they should maintain a healthy relationship with the customers ( Ahern, 2012). Overall, they need to make an effective strategy in order to gain the long term competitive advantage. The product of a bar or a restaurant should be different from the other and only then the industry can increase revenue and profitability. VRIO Analysis VRIO theory or VRIO framework is considered as one of the most useful tools to assess a businesss internal resources and capabilities and to determine that whether they will be able to sustain the long term competitive advantage of the company. VRIO stands for Valuable, Rare, Costly to Imitate and Organization (Barney and Hesterly, 2006). These aspects are discussed below: Valuable: The first aspect of the VRIO framework is value that is whether the firm is able to add value by exploiting the opportunities. The resources which creates value to the organization is called the valuable resources of the organization and these resources contributes to give the firm the long term competitive advantage. On the other hand, the resources which do not add value to the organization is called the invaluable resources and they leads to the firm to competitive disadvantage. It is important to review the valuable resources of the organization (Chapman, 2012). Rare: The second aspect of the VRIO framework is rare resources. Rare resources refers to the resources which can only be obtained by the one company or for a very few companies. These resources can give any organization the necessary long term competitive advantage (Grnig Khn, 2015). On the contrary, the resources which can be acquired by a lot of companies can lead to long term competitive parity. However, the companies should, not ignore the common resources which have comparative parity, as they are valuable for the companies. The companies should take great care of the rare resources as they are the valuable resources of the company. Costly to Imitate: The third factor in the VRIO framework is imitation. As per this model, it is costly to imitate the rare product of a firm of the company do not have the access to that particular resource. It is easy for the firm that has rare resources to achieve the long term competitive advantage (Knott, 2015). There are few types of resources that are rare to imitate like the resources that were created due to any historical events; the resources that were created due to the cultural and interpersonal relationships of the company and others. Organized to Capture Value: The last aspect of VRIO framework is to organize the resources. The resources are not of any work if the company does not organize to capture the value. It is the responsibility of the company to manage the process, system and policies in order to exploit the opportunities of the firm. The companies can gain long term competitive advantage if they can organize the valuable and rare resources of the company. These are the main four attributes of the VRIO framework (Albrecht et al., 2016). In case of the restaurant and bar industry, the mangers should apply the theory of VRIO in order to gain the necessary long term competitive advantage. In order to do so, the managers of restaurants and bars need to follow certain steps. They are discussed under: Step 1: In this step, the managers need to identify the valuable and rare resources of the restaurants and bars. Tangible assets like machinery, building, land and others can easily be obtained. However, intangible assets like goodwill, intellectual property and others are not easy to obtain. Hence the manager need to find out the activities which can lower the cost without decreasing the value of the customers; the activities which inverses the value of the product; the employees having high level of skills; the unique selling proposition of the restaurant and bar and many others. After that, it needs to be found that which resources are rare in the organization and the resources which are costly for other companies to imitate (Lin et al., 2012). Step 2: After the identification of the valuable, rare and costly to imitate resources, the managers of the restaurants and bars need to find out the ways by which they can exploit these resources to gain long term competitive advantage. The resources will be of no value if they are not exploited for the use of the company. Along with this, the mangers need to find out some more factors like whether the company has enough motivation and reward system, whether the culture of the organization support organizational innovation or not, whether the organization has the suitable structure to use the valuable and rare resources or not and many others (HUSSAIN Terziovski, 2016). Step 3: The very next step for the managers is to take initiatives in order to protect the valuable and rare resources. The first thing the managers of the restaurants and bars need to do is to make the management aware about the valuable and rare resources. After that, the managers need to suggest the management the ways by which the resources can be used to minimize the cost of the operations. Lastly, the managers need to think that how the resources can be made more rare and more costly to imitate (Mathur, Jugdev Shing Fung, 2013). Step 4: The last step for the managers is to review the resources on a daily basis as value of the resources are changed over a particular basis. The competitors will be trying to imitate the resources and for this reason, review on a regular basis is required (Mudambi Puck, 2016). Conclusion From the whole study so far, it can be observed that there are two theories that can help the managers of restaurants and bars to earn the long term competitive advantage. They are Porters Five Forces Model and VRIO Framework. As per Porters Five Forces Model, there are five major factors that can decide the competitiveness in a particular industry. As per Porters theory, the managers of restaurants and bars need to make an effective strategy to get competitive edge. They must set a competitive price, must establish strong distribution channels, should maintain a cordial relationship with the customers and should provide better services to the customers in order to get the long term competitive advantage. Another important theory for competition is the VRIO Framework. As per this framework, there are some valuable, rare and costly to imitate resources in the organization. In order to get the long term competitive advantage, the managers of bars and restaurants first need to identify the valuable, rare and costly to imitate resources and then they need to use them to get increase the productivity of the organization. After that, these valuable and rare resources need to be reviewed on a regular basis. On the basis of the whole study, it can be concluded that the managers of bars and restaurants needs to assess Porters Five Forces Model and VRIO Framework to formulate strategies in order to get the long term competitive advantage. 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